Dollar Rises as Central Banks Diverge After Singapore Eases

The dollar rose to almost the highest in a decade with the Federal Reserve seen continuing to move toward raising interest rates after Singapore became the latest nation to ease monetary policy, highlighting the diverging paths of global central banks.

The greenback advanced versus the euro amid plunging Greek markets as Prime Minister Alexis Tsipras stood by pledges to renegotiate the nation™s bailout. Policy makers in Washington are forecast to hold interest rates steady today as the end a two-day meeting before raising them by year-end. Singapore™s dollar tumbled to a four-year low. China™s yuan fell to a record discount against the central bank™s reference rate. Australia™s dollar rose.

The Bloomberg Dollar Spot Index, a gauge of the currency™s performance against 10 major peers, rose 0.3 percent to 1,157.57 as of 11:34 a.m. in New York. It closed at 1,161.42 in New York on Monday, the highest in data back to 2004. The measure has rallied after every Fed meeting since June.

The U.S. dollar appreciated 0.4 percent to $1.1334 per euro, after weakening 1.3 percent the previous day, the most since Oct. 15. It reached $1.1098 on Jan. 26, the strongest since September 2003. The yen rose 0.1 percent to 117.79 per dollar and strengthened 0.5 percent to 133.51 per euro.